In this article, we will look at the 12 Best Hair Care Stocks to Buy According to Hedge Funds.
Overview of the Global Hair Care Industry
According to a report by Mordor Intelligence, the global hair care industry is valued at $93.89 billion as of 2025. It is anticipated to grow at a compound annual growth rate of 3.4% between 2025 and 2030 and reach $110.97 billion by 2030. The Asia-Pacific region is the largest market for the hair care industry worldwide. However, South America takes the top spot as the fastest growing.
The steady growth in the global hair care industry can be attributed to various factors, including consumers’ evolving preferences and increasing technological advancements. In addition, macro trends such as a growing focus on personal wellness, inclination towards top luxury and premium hair care brands, and growing disposable incomes are further supporting growth in the global hair care industry. The demand for eco-friendly and sustainable solutions is also growing, as consumers are inclined towards organic, natural, and vegan hair care solutions and products.
Another prominent driver of market growth in the global hair care industry is the rising prevalence of hair concerns. These include hair fall, dandruff, heat damage from styling tools, and other conditions. Around 50 million men and 30 million women in the United States were affected by androgenetic alopecia in 2023 alone. Androgenetic alopecia is commonly known as male-pattern baldness in men and female-pattern hair loss in women. The rise of such concerns is ballooning the demand for specialized hair care products. The hair loss treatment segment is thus anticipated to grow at a compound annual growth rate of 7.6% between 2024 and 2029.
Another report by Mordor Intelligence shows similar trends in the hair care products market. It has a size of $94.10 billion as of 2025 and is expected to grow at a compound annual growth rate of 3.39% between 2025 and 2030. This translates to an anticipated market size of around $111.16 billion by 2030. Specialized concerns such as hair and scalp problems are driving this growth. In addition, consumers are inclined towards hair care products recommended by professionals, further driving the market.
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Trump’s Tariffs: Would American Consumers Suffer from Increased Prices?
American consumers are rightfully skeptical about the future, wondering if President Donald Trump’s tariffs could lead to a trade war. Trump said he would impose 25% tariffs on Canadian and Mexican goods and 10% on imported goods from China. He also signaled that potential tariffs on items imported from the European Union may be next. According to CNBC, Trump agreed to halt tariffs against Mexico for a month and delay those against Canada for at least 30 days. However, China has already responded with additional tariffs of up to 15% on goods imported from the United States.
American consumers expect these tariffs to directly impact their wallets. A recent consumer survey conducted by BOE on the potential effects of tariffs on consumers found that nearly 86% of Americans believed their wallets would be affected by the scenario. 12% are already stockpiling items, with a majority of others changing their shopping habits to accommodate the effects of these tariffs on their bank accounts.
Economists corroborate this view and say that many businesses will likely pass down the additional expenses to customers, indirectly or directly. This is why tariffs typically trigger increased prices for consumers. Higher tariffs on items traded between the US and China may result in inflated prices on appliances, apparel, electronics, and toys. Similarly, tariffs against Canada and Mexico may increase the already existing pressure on grocery prices.
According to the Bureau of Labor Statistics, grocery prices are up 28% over the last five years. These conditions are materializing when consumer spending is already stretched, with many households feeling financial strain. The US economy has noted steady progress overall in bringing inflation down. According to the Bureau of Labor Statistics, the consumer price index, a significant inflation measure, increased 2.9% in December 2024 compared to a year earlier, down from a June 2022 pandemic-era high of 9.1%. However, most cases show a slowing in price increases instead of a significant fall.
With these trends in view, let’s look at the 12 best hair care stocks to buy.
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Our Methodology
We sifted through stock screeners, online rankings, and ETFs to compile a list of 25 hair care stocks. We then selected the top 12 most popular stocks among elite hedge funds as of Q3 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
12 Best Hair Care Stocks to Buy According to Hedge Funds
12. Regis Corporation (NASDAQ:RGS)
Number of Hedge Fund Holders: 3
Regis Corporation (NASDAQ:RGS) is a haircare company that owns and franchises cosmetology education and beauty salons. The company offers a range of hair care services, including styling, coloring, and haircuts, along with an elaborate selection of nationally recognized professional haircare products. It operates through two segments: franchise salons and company-owned salons. The company owns, franchises, or holds ownership interests in over 4,800 locations across the globe. Regis Corporation’s (NASDAQ:RGS) brands include Cost Cutters, First Choice Haircutters, Supercuts, SmartStyle, and more.
The company recently acquired Alline Salon Group, its largest franchisee, adding $83 million in revenue and $5.8 million in EBITDA. The strategic acquisition of 314 salons is anticipated to strengthen the company’s operational footprint while maintaining an asset-light model with a 93% franchise base.
While Regis Corporation (NASDAQ:RGS) reported a decreased consolidated revenue of $46.1 million in fiscal Q1 2025, down by $7.3 million compared to the prior year, its overall operational results reflect the company’s efforts to stabilize its business. The decrease in revenue was attributed to lower store count and same-store sales. The company’s strategic initiatives, such as the acquisition of Alline Salon Group, are expected to support its stabilization and help boost growth in the long term.
11. Olaplex Holdings, Inc. (NASDAQ:OLPX)
Number of Hedge Fund Holders: 18
Olaplex Holdings, Inc. (NASDAQ:OLPX) is a technology-driven beauty company focusing on hair health. Its portfolio comprises around 17 complementary products specialized to improve hair health. These products have three uses: protection, maintenance, and treatment. The company’s products are offered through specialty retail, professional, and direct-to-consumer (DTC) channels.
Olaplex Holdings, Inc. (NASDAQ:OLPX) reported a 3.6% decline in its net sales for fiscal Q3 2024 compared to a year ago. However, it reflected a sequential improvement from fiscal Q2 2024. The decline was attributed to weaker-than-expected results in its international business. Fiscal 2024 was a year of transformation for the company, as it took a long-term view of its strategic priorities and initiatives to position Olaplex Holdings, Inc. (NASDAQ:OLPX) for growth. It is making progress in improving its business’s health and expanding its portfolio.
The company announced three new innovative products in fiscal Q3 2024: No. 5 Leave-In Conditioner, Bond Shaper Curl Rebuilding salon treatment, and No. 10 Bond Shaper Curl Defining Gel. Since Olaplex Holdings, Inc. (NASDAQ:OLPX) is a science-enabled company, such new innovations are a significant force behind its global appeal. According to Circana’s retail tracking data of the US hair market, the company had 4 of the 5 best-selling prestige hair care products year-to-date in 2024. It also has a healthy balance sheet and strong cash generation, which allows it to continue investing in its future growth. On January 6, Piper Sandler analyst Korinne Wolfmeyer raised the firm’s price target to $2 from $1.50.
Here is what ClearBridge Mid Cap Growth Strategy has to say about Olaplex Holdings, Inc. in its Q3 2021 investor letter:
“Within capital markets, the US initial public offering (IPO) market remains active with $27 billion in deals during the third quarter, while chunky secondary offerings from private holders weighed on selected equities. We remained selective in the new issue market, participating in the IPO of Olaplex Holdings in the consumer staples sector. Olaplex is a marketer of hair care products targeting a massive consumer market where it is less than 1% penetrated. The company possesses a differentiated model driven by 1) a patented “bond building” ingredient, 2) a devout stylist community and social media presence that is larger than its mass channel peers, and 3) a fully outsourced model that borders on licensing.”
10. Unilever PLC (NYSE:UL)
Number of Hedge Fund Holders: 22
Unilever PLC (NYSE:UL) is a fast-moving consumer goods (FMCG) company that operates through five segments: Personal Care, Nutrition, Beauty and Well-Being, Home Care, and Ice Cream. The Beauty and Well-Being segment sells hair care products, including conditioner, shampoo, styling products, and more. Unilever PLC (NYSE:UL) offers over 400 brands worldwide.
Unilever PLC (NYSE:UL) saw underlying sales growth of 4.5% in fiscal Q3 2024, with volume growth rising to 3.6%. All of its business segments achieved positive volume growth in the quarter, with Beauty & Well-being up by 6.7% in sales growth, Personal Care by 4.4%, and Ice Cream by 9.8%, primarily due to operational improvements and strong demand. Unilever PLC (NYSE:UL) also reported a strong position in its cash segment. Its free cash flow for the period came in at €2.2 billion. The company ended the first half of fiscal 2024 with €4.97 billion in cash and cash equivalents, compared with €4.1 billion at the end of December 2023.
The company’s productivity program is thus on track, and so is the separation of its Ice Cream business. The separation activity is expected to be completed by 2025 end and is anticipated to result in a more focused Unilever PLC (NYSE:UL) with a concentrated portfolio. The company ranks tenth on our list of the 12 best hair care stocks to buy according to hedge funds. On February 5, Callum Elliott from Bernstein maintained a Buy rating on Unilever PLC (NYSE:UL) with a price target of £52.00.
Hotchkis & Wiley Funds highlighted Unilever PLC’s (NYSE:UL) strong performance in its Q3 2024 investor letter. Here is what the firm had to say:
“Unilever PLC (NYSE:UL) is one of the world’s leading suppliers of consumer goods in the food, home care, and personal care categories, maintaining #1 or #2 market share over 75% of its business. With a new CEO and the involvement of an activist investor (Trian), Unilever is focused on execution and consistency, expecting low to mid-single digit volume-driven top line growth over the medium term, profit growth ahead of sales growth due to operating leverage and mix, and consistent return of cash to shareholders. Additionally, the company has announced plans to separate the Ice Cream business (13% of 2023 sales), which is expected to be completed by the end of 2025 and increase organic sales growth to 4-6% annually. Over the last quarter, the stock price reached a five-year high, as the company has continued to execute the plans laid out above. Unilever has not yet released their official third-quarter results but has reiterated their confidence in achieving 3-5% organic sales growth for the full year, with the majority of this growth being driven by volume.”
9. Helen of Troy Limited (NASDAQ:HELE)
Number of Hedge Fund Holders: 25
Helen of Troy Limited (NASDAQ:HELE) is a global consumer products company with an elaborate portfolio of brands, including Curlsmith, OXO, PUR, Hot Tools, Osprey, and more. It operates in the Beauty and Wellness and Home and Outdoor segments. The Beauty and Wellness segment offers beauty and wellness products, including hair styling appliances, grooming tools, and more.
The company continued to benefit from the meaningful net distribution gains it won in the first half of fiscal year 2025 and further expanded distribution in fiscal Q3 2025. It has grown its US weighted distribution by 11% year-over-year in fiscal year-to-date. The company has also attained meaningful international distribution via new channels and new distributor partnerships.
Helen of Troy Limited (NASDAQ:HELE) has various other strategic initiatives that position it on the path to growth. It is making progress in using data and analytics across all facets of its business. For instance, it is continually using its marketing mix model to prioritize investment opportunities across its brand portfolio and choose the marketing tactics with the best ROI potential. Such efforts have led to market share growth in various categories. Another of its long-term strategic initiatives includes refining and shaping its portfolio to maximize profitable growth. Helen of Troy Limited (NASDAQ:HELE) also announced the closing of its acquisition of Olive & June at the end of fiscal Q3 2025, which is expected to further support the company’s growth.
Palm Valley Capital Fund stated the following regarding Helen of Troy Limited (NASDAQ:HELE) in its Q3 2024 investor letter:
“Helen of Troy Limited (NASDAQ:HELE) was the only new purchase made during Q3. It is a diversified consumer products roll-up. The company’s top brands include OXO, Hydro Flask, Osprey, PUR, Hot Tools, and Dry Bar. Helen also has leading market positions through the licensed brands Braun, Vicks, Honeywell, and Revlon. The company’s operating performance peaked during the pandemic, but sales have contracted in the last two years as consumer demand for Helen’s products has normalized post-stimulus. The firm’s stock is heavily shorted, with short sellers arguing that Helen is an overleveraged and broken roll-up with second-tier brands and meager cash flow. We believe this is wrong. Most of the company’s brands command leading shares in their markets.”
8. Nu Skin Enterprises, Inc. (NYSE:NUS)
Number of Hedge Fund Holders: 27
Nu Skin Enterprises, Inc. (NYSE:NUS) is an integrated wellness and beauty company that develops and markets an elaborate range of products in around 50 markets worldwide. It has three brands: Nu Skin, Pharmanex, and ageLOC. Nu Skin is a beauty brand, while Pharmanex and ageLOC are wellness and anti-aging brands, respectively. The company offers various hair care products, including serums, shampoos, conditions, hair masks, and more.
On January 3, the company announced the completion of a strategic transaction between its Rhyz Inc. subsidiary and Later, a portfolio company of Summit Partners. Rhyz Inc. sold Mavely, its affiliate marketing technology platform, to Later for approximately $250 million cash and a minority equity stake in the combined Later/Mavely business. Mavely is anticipated to continue offering certain technology and social commerce abilities to support Nu Skin Enterprises, Inc.’s (NYSE:NUS) affiliate marketing business.
This strategic transaction gave the company around five times the return on its cumulative investments in Mavely since its acquisition in 2021. The proceeds from this transaction are expected to help Nu Skin Enterprises, Inc. (NYSE:NUS) fund innovation in its offerings and pay down debt. The company also plans to use its strengthened balance for share buybacks under its existing stock repurchase program, providing value to its shareholders. The company ranks eighth among the 12 best hair care stocks.
7. Sally Beauty Holdings, Inc. (NYSE:SBH)
Number of Hedge Fund Holders: 28
Sally Beauty Holdings, Inc. (NYSE:SBH) is an international specialty retailer specializing in professional beauty supplies. Its operations span two segments: Beauty Systems Group (BSG) and Sally Beauty Supply. The company offers over 7,000 products in the hair care, hair color, hair styling tools, and nails categories. Its proprietary brand portfolio includes Bondbar, Strawberry Leopard, Generic Value Products, and more.
Sally Beauty Holdings, Inc. (NYSE:SBH) reported net sales worth $3.7 billion in fiscal year 2024, along with a gross margin of 51%. Fiscal Q4 2024 showed a 1.5% growth in net sales, reaching $935 million. The company also attained four consecutive quarters of positive comp sales in BSG and two in Sally Beauty. This growth was attributed to Sally Beauty Holdings, Inc.’s (NYSE:SBH) product innovation, performance marketing, and the growth of digital marketplaces on Instacart, DoorDash, Amazon, and Walmart.
The company also managed to bring its net debt leverage to 2x through senior note refinancing, ABL repayment, and $60 million in share repurchases. These positive factors lend Sally Beauty Holdings, Inc. (NYSE:SBH) a top spot as one of the best hair care stocks.
6. Church & Dwight Co., Inc. (NYSE:CHD)
Number of Hedge Fund Holders: 32
Church & Dwight Co. (NYSE:CHD) manufactures, develops, and markets a range of personal care, consumer household, and specialty products. Its product offerings in the personal care segment include various goods, including the affordable haircare brand Batiste. The company operates in the Consumer Domestic, Consumer International, and Specialty Products Division (SPD) segments.
Church & Dwight Co., Inc. (NYSE:CHD) exceeded its sales growth outlook in fiscal Q4 2024, reporting a 4.1% net sales increase in fiscal year 2024 in comparison to the company’s outlook of around 3.5%. It drove strong consumer demand across its geographies and portfolios in fiscal year 2024, with organic sales increasing by 4.6%. The primary driver of organic growth was volume, which Church & Dwight Co., Inc. (NYSE:CHD) expects to continue in fiscal year 2025.
These positive results reflect the strength of the company’s brands, the success of its new and innovative products, and the benefits of its continued focus on execution. The company also reported strong cash flow generation, with over $1.1 billion of cash from operations in fiscal year 2024. This growth was attributed to margin expansion, strong sales, and efficient working capital management. Church & Dwight Co., Inc. (NYSE:CHD) ranks sixth on our top hair care stocks to buy. On February 5, Argus Research analyst Taylor Conrad reiterated a Buy rating on the company.
5. Bath & Body Works, Inc. (NYSE:BBWI)
Number of Hedge Fund Holders: 36
Bath & Body Works, Inc. (NYSE:BBWI) is a specialty omnichannel retailer specializing in personal care and home fragrance. It sells its merchandise under Bath & Body Works, White Barn, and other brand names and has an elaborate range of shampoos, conditioners, body lotions, home fragrance diffusers, 3-wick candles, and more. Its hair care essentials are known for their signature composition, made without artificial dyes, sulfates, and parabens.
Bath & Body Works, Inc. (NYSE:BBWI) sells its merchandise in around 1,850 company-operated stores and e-commerce sites across the US and Canada. It also has around 485 stores and 28 e-commerce sites in over 40 other countries across the globe, operating under license, franchise, and wholesale arrangements. The company reported a 3% growth in its net sales in fiscal Q3 2024, reflecting a positive growth in its core operations. Its predominantly US-based supply chain and agile business model lend it a competitive market edge.
In addition, Bath & Body Works, Inc.’s (NYSE:BBWI) strategic investments and focused execution of its five E strategy are driving momentum toward long-term profitable growth. The five Es of its strategy include elevating the Bath and Body Works brand and core products, engaging with its core customers innovatively, extending its reach to new markets and adjacencies, enhancing its omnichannel experience, and enhancing operational efficiency and excellence. It made progress across all these categories in fiscal Q3 2024. The company ranks fifth on our list, and its current price target of $35.89 implies an upside of 19.81% from current levels.
4. Ulta Beauty, Inc. (NASDAQ:ULTA)
Number of Hedge Fund Holders: 40
Ulta Beauty, Inc. (NASDAQ:ULTA) is a beauty retailer that offers merchandise in various categories, including hair care, skincare, cosmetics, hair styling, and more. It also offers several beauty services in its stores, focusing on hair, makeup, skin, and brow. The Ulta Beauty store prototype includes an open salon area on the salon floor. It offers its customers a new way to shop by bringing together “All Things Beauty, All in One Place.”
Ulta Beauty, Inc. (NASDAQ:ULTA) operates more than 1,437 retail stores across 50 US states as of the end of fiscal Q3 2024. The company’s rick-and-mortar offerings and digital presence are both a significant part of its strategic standing. It sells hundreds of beauty brands in its stores, provides curbside pickups and delivery services, and also offers shop-in-shop partnerships, such as its partnership with Target.
The company’s loyalty program continually pulls consumers to its website and app, which has over 44 million members. A significant portion of Ulta Beauty, Inc.’s (NASDAQ:ULTA) sales come from its loyalty membership program, which rose another 5% year-over-year in fiscal Q3 2024. Management hopes to report net sales of more than $11 billion for fiscal year 2024 and an operating margin of around 13%. The company has a resilient market share and strong operating model, ranking it fourth on our list of the 12 best hair care stocks to buy.
3. Kenvue Inc. (NYSE:KVUE)
Number of Hedge Fund Holders: 46
Kenvue Inc. (NYSE:KVUE) is a consumer health company that operates through three segments: Skin Health and Beauty, Self Care, and Essential Health. Its Skin Health and Beauty segment offers hair care, body care, face care, and other product categories. Its global footprint spans more than 165 countries across its four regions.
Kenvue Inc. (NYSE:KVUE) reported a 2.1% revenue growth in its Self-Care segment in fiscal Q4 2024. However, its Skin Health and Beauty segment declined 2.7% in organic sales, primarily due to market challenges and competitive pressures. Overall, net sales for the company remained stable year over year. However, its gross profit margin rose to 56.5% from 55.7% last year due to reduced separation-related costs and productivity improvements, painting an optimistic picture.
Famous for brands such as Listerine and Tylenol, Kenvue Inc. (NYSE:KVUE) holds a competitive market edge due to its continuous innovation and strong brand recognition. It is implementing operational efficiencies and enhancing its brand investments to effectively and profitably navigate market dynamics. Kenvue Inc. (NYSE:KVUE) is primarily focusing on brand strength and product diversification. Since it has operations across the globe, it derives benefits from its parent company, Johnson & Johnson, which also supports its research capabilities and supply chain. This helps the company zoom in on growth opportunities and maintain market share. On February 7, Bank of America Securities analyst Anna Lizzul maintained a Buy rating on the company. It ranks third on our list.
2. The Estée Lauder Companies Inc. (NYSE:EL)
Number of Hedge Fund Holders: 49
Estée Lauder Companies Inc. (NYSE:EL) is a globally popular manufacturer of hair care, skincare, makeup, and fragrance. Its elaborate product portfolio includes Estée Lauder, Clinique, MAC, Bobbi Brown, Jo Malone London, Too Faced, La Mer, and others. The company sells its products through multi-brand retailers, department stores, prestige salons and spas, upscale perfumeries, and pharmacies.
The company has been experiencing negative trends in its operations since last year. It reported a 6% drop in revenue to $4.0 billion in fiscal Q2 2025. The center of these struggles for The Estée Lauder Companies Inc. (NYSE:EL) is weak consumer spending in China and a drop in the Asia Travel business, which comprises a majority of Chinese travelers purchasing products abroad.
However, the company’s new CEO has announced a “Beauty Reimagined” reinvention plan with five action plans to help the company recover. These plans include accelerating best-in-class consumer coverage, creating transformative innovation, accelerating new consumer acquisition by boosting consumer-facing investments, fueling sustainable growth through bold efficiencies, and reimagining operations by simplifying the organization.
1. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 68
The Procter & Gamble Company (NYSE:PG) provides branded consumer packaged goods to consumers across the globe. Its operations are divided into Fabric & Home Care, Grooming, Beauty, Health Care, Feminine & Family Care, and Baby. The company boasts a strong portfolio of brands, which includes reputable names such as Head & Shoulders, Pantene, Old Spice, Olay, Herbal Essences, Safeguard, Tide, Always, Venus, Oral-B, Ariel, Crest, Tampax, and others. Head & Shoulders, Herbal Essences, and Pantene are prominent hair care brands that offer shampoos, conditioners, and more.
The Procter & Gamble Company (NYSE:PG) sells its products in around 180 countries and territories. The company operates a long list of industry-leading brands across key consumer staples categories, which lends it a major competitive advantage. Over the last decade, it has returned around $147.8 billion to shareholders: $67.9 billion through share buybacks and $79.9 billion via dividends. This reflects its strong model of operation.
The company reported a 2% year-over-year growth in net sales to $21.9 billion in fiscal Q2 2025, along with a 3% organic sales growth. It further expanded its hair care sector in North America, Latin America, and Europe, which supported a 2% year-over-year growth in organic sales in the Beauty segment. Its Personal Care segment also reported double-digital growth, primarily due to volume gains and innovation.
Procter & Gamble Company’s (NYSE:PG) strategic goals have the potential to help its brands continually increase their influence over retailers and consumers, sustaining its broad moat in the long term. These strategic goals include product innovation and marketing investments, among others. The company’s current price target of $167.97 implies an upside of 8.95% from current levels.
Overall, PG ranks first among the 12 best hair care stocks to buy according to hedge funds. While we acknowledge the potential of hair care stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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